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Apple Reports Q3 2015 Earnings of $10.7B on $49.6B Revenue: 47.5M iPhones, 10.9M iPads, 4.8M Macs
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Apple stock is currently undervalued by close to 20% by even the most conservative valuation metrics.
Weird because they have sold a lot more watches then original iPhones. I had an original iPhone day 1. I don't remember seeing people with them yet I was stopped and asked about my iPhone dozens of times in the first month I had it.
o....k.....
Do you feel the need to quote everyone that doesn't agree with you?
Or googles love affair with search. The reality is many of these companies depend on one segment to drive the bulk of sales and growth. Google is pretty much dependent on search engine and Google ad revenue to support the entire company.
Successfully diversifying is extremely hard. Especially when you have ridiculously successful products like the iPhone (which makes 90 some percent of ALL the profit in the industry) or Google search which is THE option for search and rakes in endless amounts of cash from advertising.
Most of what apple and Google do pivot off their individual masters.
If an analysts guesses that Apple should sell 50 million iPhones... what exactly are they basing it on?
These analysts don't have data about how well iPhones are selling in 100 different markets around the world.
The analysts somehow guess 50 million... and Apple sells 47 million.
Therefore... Apple failed to meet expectations.
The range of "guesses" goes from 43 million units to 56 million units. How are they getting these numbers?
How many iPhones should Apple be selling over a span of 90 days?
Also... YoY growth is a good thing. I don't know why you are dismissing the fact that Apple sold more iPhones this quarter than they did a year ago.
They also made more money: $10.7B versus $7.7B a year ago.
Doesn't that overshadow the "missed expectations" on iPhone unit sales... which were complete guesses to begin with?
Ipad lifecycle still hasn't been fully fleshed out. People don't replace pcs very often any more and tablets are being used more like pcs than phones. 3-5 year life for a tablet will not be atypical. Apple may end up going to a longer development cycle for iPads in the future. I just don't think the tablet market necessarily dictates annual refreshes.
Could be over $1B given declining iPod sales. Even around $1.2B, could be well under 3M units given enough sales of stainless steel and Edition Watches plus extra bands. Could be really low unit numbers if they sold tens or hundreds of thousands of Edition Watches, but I doubt that.
Yes, it does. Because each analyst raise drove the stock higher than it would have been. We're now back to where we started.
Analysts get estimates from channel checks which help them understand how sales are going. What happened this past week was not based on any real data but a herd mentality among analysts to one up each other.
Really? So Google's $60B jump last Friday was all about future expectations? BS. And what expectations exactly does Wall Street have for Apple's weakest quarter seasonally? Everyone knows Apple isn't going to announce new products/product categories in fiscal Q4.
Not BS at all. Analysts had Google estimates much lower than actual were hence the jump after the earnings release. In this case, they were way off which is why you saw such a big jump.
If Apple had reported 51M iPhones sold, the stock would be at 140.
It is a combination of Apple's guidance combined with analyst various channels they check. I won't pretend to know the channels they check, because there are certainly some who really are doing nothing more than "slightly educated" guessing.....but other more reputable analysts are doing more than guessing and have sources in the distribution chain who provide intel. Regardless though, it doesn't matter how those estimates are created....if the Market believes it....which in the case of a highly covered stock like Apple, owned by all the big boy institutions, mutual funds, etc, the market believes and pays attention to the estimates.
I am dismissing their YoY increases because they simply do not matter to the stock price. If you follow Apple stock (I'm talking over several years) you start to see this. I certainly didn't see it right away but it becomes apparent.
Apple missed iphone sales estimates by quite a lot.
You are doing it wrong. Why are you comparing estimates of q3 2015 w results of q3 2014?
Seriously explain why you did that.
Apple actually sold 47.53 million iPhones in q3 2015. Which means the analysts were off by 2 million or little over 4%. However the analysts are always over even though Apple keeps setting records and beating their own guidance.
So now that we know apple told the world this would be a record breaking quarter in advance, was even better than apple said yet are we are to listen to analysts who are always wrong.
Even worse you took this chart from God knows where and completely misread and misunderstood it.
Patrick Smellie almost nailed the number exactly, a handful of others were under and the rest over, including some over by almost 25% which is is just ridiculous.
So no apple did not miss estimates by quite a bit, quite a few analysts we're wrong about apple which is what happens every quarter. Apple always gives conservative guidance but it is still a better predictor of what will happen than these analysts. Their aggregate will always be too high.
This is not a fault with apple it is a fault with our banking system and stock analysts who are on average incompetent.
So basically Google benefited from an extremely low bar. I don't think any sane person could argue that Google's quarter warranted a 17% increase in the stock. Their PE is 33. That's ridiculous. And that 51M iPhone figure was recent. Almost as though some analysts intentionally threw out higher whisper numbers that they knew Apple would never beat.
Google not only benefited from a low bar but the CFO also surprised on plans to cut costs and return dividends to shareholders. That news sent the stock up.
The analysts do whatever they do (intentionally or a conspiracy) but it's the market that ran up the stock from 120 to 131 in less than a week, not the analysts. That was done by shareholders for believing the estimates. Hopefully, shareholders will learn next time.
When all is said and done, AAPL is back where is started before all the raises.
It's all game playing by the analysts, the banks and firms they work for and their big investors. It's transparently silly.
Apple's stock is still significantly undervalued and will probably remain that way for quite some time.
Agreed. At least until the 6S comes out. It's all about expectations.
Apple has a hard time meeting wild expectations during the mid cycle quarters but usually surpasses estimates during quarters where they launch a new iPhone.
It will be interesting to see where it ends up tomorrow afternoon. When Intel announced their stock jumped over 5% after hours but that didn't hold the next day and they've been pretty much down since.
As smartphone sales slow due to market saturation, it'll be interesting to see what Apple turns to. Nothing carries on forever. Especially in the fast paced tech sector.
That's when Apple will reveal what they're truly made of. I wonder if they'll be able to maintain and grow their "Magical & Revolutionary" income stream continuously going forward.
That's when Apple will reveal what they're truly made of. I wonder if they'll be able to maintain and grow their "Magical & Revolutionary" income stream continuously going forward.
The chart was from Forbes a couple days ago. Not sure how you can misread it, it's just a list of analysts and their estimates for iPhones sold in Q3.
So you mean anecdotal evidence like "I only seen 5 watches in the wild. I done seen hunderds of iPhones when it first come out" doesn't count?